The role of teamwork in an M&A deal
The success of a merger or acquisition depends on many things, but one of the most important is putting in place a strong, close-knit team. Here is an overview of how your merger and acquisition team should work together and why it is so important to have a cohesive unit.
What is an M&A team (deal team)?
An M&A team — or deal team — brings together everyone who steers a deal from start to finish: executives and shareholders, an M&A adviser, a lawyer, an accountant, a tax specialist and the finance department. Each brings specific expertise; it is their coordination that turns a project into a successful deal.
How should your merger and acquisition team work together?
All successful merger and acquisition teams have a few key elements in common. First, they have clear and defined roles. Each team member knows their role and understands how it fits into the overall project. This helps avoid confusion and duplication of effort.
Another important aspect of successful merger and acquisition teams is effective communication. It is about keeping everyone informed of what is happening at every stage of the process. It also means being open to the contributions and feedback of all team members. Finally, good communication requires being able to give and receive constructive criticism.
In addition, successful merger and acquisition teams are built on trust. This does not mean that there are no disagreements – in fact, healthy debate is essential to make sure all bases are covered – but it means that team members know they can rely on one another to do their job well and to support each other.
Why is it important to have a cohesive unit?
Mergers and acquisitions involve many moving parts, which is why it is so important to have a team that works well together. A cohesive unit will be able to identify potential problems early and find solutions quickly. It will also be better able to execute the plan smoothly and efficiently, which is crucial when time is often short. But most importantly, a close-knit team simply gets things done – and does them well.
Who makes up a merger and acquisition team?
The M&A adviser
Conductor of the deal: strategy, valuation, identifying targets or buyers, negotiation and coordination of all the parties involved.
The M&A lawyer
Secures the transaction legally: legal due diligence, drafting of the letter of intent, the agreement and the representations and warranties.
The accountant
Runs the financial due diligence: analysis of the accounts, adjustments, validation of the real profitability and the points of attention.
The tax specialist
Optimises and secures the tax structuring of the deal, in line with the chosen legal structure.
The executives & shareholders
Carry the strategic vision, make the key decisions and lead the final negotiation alongside their advisers.
The finance department (CFO)
Provides and validates the financial data, prepares the financing and tracks the indicators throughout the process.
Internal team or external advisers?
The internal team
- Deep knowledge of the company and its market
- Strategic vision and decision-making power
- First-hand financial and operational data
- Continuity after the deal, notably for integration
The external advisers
- Dedicated expertise (M&A, legal, tax, audit)
- Objectivity and perspective on valuation and risks
- Access to deal flow and to buyers / targets
- Capacity to absorb the workload without slowing the business
In conclusion
As you can see, there are many benefits to having a coherent and high-performing merger and acquisition team. Therefore, if you are considering carrying out a merger or acquisition for your company, take the time to build a strong team – it could make all the difference between the success and the failure of the deal.
Frequently asked questions about the M&A team
Who makes up a merger and acquisition team?
Generally: the executives and shareholders, an M&A adviser, an M&A lawyer, an accountant, a tax specialist and the finance department. On large deals, an integration adviser and sector experts are sometimes added.
Why work with an M&A adviser?
The M&A adviser orchestrates the deal, values the company, identifies and approaches counterparties, leads the negotiation and secures the process. It saves time and provides access to qualified deal flow.
What is the lawyer's role in an acquisition?
The lawyer secures the deal legally: they carry out the legal due diligence, draft the letter of intent, the agreement and the representations and warranties, and ensure compliance with regulatory obligations.
How do you coordinate the different experts in a deal?
By appointing a conductor (the M&A adviser), defining clear roles, establishing regular communication and centralising documents in a shared data room.
Build the right team for your deal
M&A advisory, valuation, due diligence, negotiation: Collaboration Capital coordinates your deal from end to end.
Request a confidential discussion